A system, method and configuration for recovering turpentine during the manufacturing of wood chips, wood pellets or other substances that may include turpentine. In general, a turpentine recovery system is used to capture turpentine from exhaust of a dryer as wood chips are being dried. Advantageously, application of the various techniques disclosed herein can result in the recovery of turpentine that can then be sold to generate revenue and, may contribute to a reduction in the capital and operation costs for emission controls for the dryer exhaust.